Yangon Region Gold Entrepreneurs Association asked the members not to buy the gold competitively because of the surge in spot gold rates.
After the US bank went bankrupt, the gold price soared. Despite the gold gain in the global market, Myanmar’s forex market sees no movement at all. Consequently, YGEA requested its members not to buy them competitively, tracking the upward trend in the gold spot price, as per YGEA’s statement released on 20 March.
Additionally, it made a further request to control the market to stop volatile prices.
Afterwards, the YGEA called for the members to make gold transactions with only immediate payment and avoid verbal transactions over calls without having any physical stocks.
The YGEA is not bound to have any responsibilities for market manipulation in the unofficial markets. As a result of this, its members are asked to strictly adhere to the rules and regulations of the association while making gold transactions.
At present, the authorities concerned are attempting to deal with market abuse and inspecting and prosecuting market manipulation is being undertaken.
On 20 March, YGEA hiked the reference rate to over K2,358,600 per tical (0.578 ounce or 0.016 kilogramme) with the spot gold prices rising to US$2,002 per ounce.
The gold rate moved slightly down to $1,970 per ounce on 21 March, so the YGEA’s reference rate decreased to K2,320,900 per tical.
Pure gold price is soaring at approximately K2,945,000 per tical in the unofficial domestic market, showing a price difference of K620,000 per tical compared with the YGEA’s reference rate.
YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition, while the US dollar is exchanged at K2,880 in the unofficial forex market.
The dollar exchange rate weighs on the market price and reference price of gold.
The soaring dollar exchanging at over K4,500 drove the pure gold price up to a record-high of K3.7 million per tical in late August 2022.
For the gold price to decline, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots under the competitive bidding system in Yangon, Mandalay and Nay Pyi Taw.
With an aim at reducing gold prices, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well. – NN/ EM